[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3170 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 3170
To amend the Internal Revenue Code of 1986 to expand the incentives for
the environmental cleanup of certain contaminated industrial sites
designated as brownfields.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 25, 2001
Mr. Andrews introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to expand the incentives for
the environmental cleanup of certain contaminated industrial sites
designated as brownfields.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. CREDIT TO HOLDERS OF QUALIFIED BROWNFIELDS CLEANUP BONDS.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 30B. CREDIT TO HOLDERS OF QUALIFIED BROWNFIELDS CLEANUP BONDS.
``(a) Allowance of Credit.--In the case of a taxpayer who holds a
qualified brownfields cleanup bond on a credit allowance date of such
bond which occurs during the taxable year, there shall be allowed as a
credit against the tax imposed by this chapter for such taxable year an
amount equal to the sum of the credits determined under subsection (b)
with respect to credit allowance dates during such year on which the
taxpayer holds such bond.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance date
for a qualified brownfields cleanup bond is 25 percent of the
annual credit determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any qualified brownfields cleanup bond is the
product of--
``(A) the applicable credit rate, multiplied by
``(B) the outstanding face amount of the bond.
``(3) Applicable credit rate.--For purposes of paragraph
(1), the applicable credit rate with respect to an issue is the
rate equal to an average market yield (as of the day before the
date of issuance of the issue) on outstanding long-term
corporate debt obligations (determined under regulations
prescribed by the Secretary).
``(4) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period ending
on a credit allowance date, the amount of the credit determined
under this subsection with respect to such credit allowance
date shall be a ratable portion of the credit otherwise
determined based on the portion of the 3-month period during
which the bond is outstanding. A similar rule shall apply when
the bond is redeemed.
``(c) Qualified Brownfields Cleanup Bond.--For purposes of this
section--
``(1) In general.--The term `qualified brownfields cleanup
bond' means any bond issued as part of an issue if--
``(A) 95 percent or more of the proceeds of such
issue are to be used for the abatement or control of
hazardous substances at a qualified contaminated site,
``(B) the bond is issued by a State or local
government within the jurisdiction of which such site
is located,
``(C) the issuer designates such bond for purposes
of this section, and
``(D) the term of each bond which is part of such
issue does not exceed 15 years.
``(2) Limitation on amount of bonds designated.--The
maximum aggregate face amount of bonds issued during any
calendar year which may be designated under paragraph (1) by
any issuer shall not exceed the limitation amount allocated
under paragraph (3) for such calendar year to such issuer.
``(3) National limitation on amount of bonds designated.--
There is a national qualified brownfields cleanup bond
limitation for each calendar year. Such limitation is--
``(A) $100,000,000 for 2002, and
``(B) $150,000,000 for 2003.
``(4) Allocation of limitation among states.--The
limitation applicable under paragraph (3) for any calendar year
shall be allocated among the States by the Secretary of the
Treasury.
``(5) Carryover of unused limitation.--If for any calendar
year--
``(A) the amount allocated under paragraph (4) to
any State, exceeds
``(B) the amount of bonds issued during such year
which are designated under paragraph (1) pursuant to
such allocation,
the limitation amount under paragraph (4) for such State for
the following calendar year shall be increased by the amount of
such excess.
``(6) Bond to be paid back from any tax revenue increase.--
A bond shall not be treated as a qualified brownfields cleanup
bond unless any increase in real property tax revenues
(attributable to increases in assessed value) by reason of the
carrying out of the purposes described in paragraph (1)(A) is
reserved exclusively for debt service on the issue referred to
in paragraph (1) (and similar issues) to the extent such
increase does not exceed such debt service.
``(d) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under part
IV of subchapter A (other than subpart C thereof,
relating to refundable credits).
``(2) Carryover of unused credit.--If the credit allowable
under subsection (a) exceeds the limitation imposed by
paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the credit
allowable under subsection (a) for such taxable year.
``(e) Other Definitions.--For purposes of this section--
``(1) Credit allowance date.--The term `credit allowance
date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term includes the last day on which the bond is
outstanding.
``(2) Bond.--The term `bond' includes any obligation.
``(3) State.--The term `State' includes the District of
Columbia and any possession of the United States.
``(4) Qualified contaminated site.--The term `qualified
contaminated site' means a brownfield site designated by the
Administrator of the Environmental Protection Agency.
``(5) Hazardous substance.--The term `hazardous substance'
has the meaning provided by section 198(d).
``(f) Credit Included in Gross Income.--Gross income includes the
amount of the credit allowed to the taxpayer under this section
(determined without regard to subsection (d)) and the amount so
included shall be treated as interest income.
``(g) Bonds Held by Regulated Investment Companies.--If any
qualified brownfields cleanup bond is held by a regulated investment
company, the credit determined under subsection (a) shall be allowed to
shareholders of such company under procedures prescribed by the
Secretary.
``(h) Credits May Be Stripped.--Under regulations prescribed by the
Secretary--
``(1) In general.--There may be a separation (including at
issuance) of the ownership of a qualified brownfields cleanup
bond and the entitlement to the credit under this section with
respect to such bond. In case of any such separation, the
credit under this section shall be allowed to the person who on
the credit allowance date holds the instrument evidencing the
entitlement to the credit and not to the holder of the bond.
``(2) Certain rules to apply.--In the case of a separation
described in paragraph (1), the rules of section 1286 shall
apply to the qualified brownfields cleanup bond as if it were a
stripped bond and to the credit under this section as if it
were a stripped coupon.
``(i) Treatment for Estimated Tax Purposes.--Solely for purposes of
sections 6654 and 6655, the credit allowed by this section to a
taxpayer by reason of holding a qualified brownfields cleanup bond on a
credit allowance date shall be treated as if it were a payment of
estimated tax made by the taxpayer on such date.
``(j) Credit May Be Transferred.--Nothing in any law or rule of law
shall be construed to limit the transferability of the credit allowed
by this section through sale and repurchase agreements.
``(k) Reporting.--Issuers of qualified brownfields cleanup bonds
shall submit reports similar to the reports required under section
149(e).''
(b) Reporting.--Subsection (d) of section 6049 of such Code
(relating to returns regarding payments of interest) is amended by
adding at the end the following new paragraph:
``(8) Reporting of credit on qualified brownfields cleanup
bonds.--
``(A) In general.--For purposes of subsection (a),
the term `interest' includes amounts includible in
gross income under section 30B(f) and such amounts
shall be treated as paid on the credit allowance date
(as defined in section 30B(e)(1)).
``(B) Reporting to corporations, etc.--Except as
otherwise provided in regulations, in the case of any
interest described in subparagraph (A) of this
paragraph, subsection (b)(4) of this section shall be
applied without regard to subparagraphs (A), (H), (I),
(J), (K), and (L)(i).
``(C) Regulatory authority.--The Secretary may
prescribe such regulations as are necessary or
appropriate to carry out the purposes of this
paragraph, including regulations which require more
frequent or more detailed reporting.''
(c) Conforming Amendment.--The table of sections for subpart B of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 30B. Credit to holders of
qualified public brownfields
cleanup bonds.''
(d) Effective Date.--The amendments made by this section shall
apply to obligations issued after December 31, 2001.
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